strategic planning, (ii) knowledge management, (iii) sufficient resources,
(iv) appropriate risk measurements and tools, and (v) effective business continuity
plan. According to Amui et al. (2017), companies that fulfil the needs of their
stakeholders have better chances of survival over the long run. The result also
reinforced that meeting the stakeholder needs is essential for any company’s survival. Accordingly, implementing SRM programme is proven to ensure that the
needs and concerns of multiple stakeholders are taken into account in the board’s
decisions.
12.6 Conclusion
SRM practices are an important research area that deserves more attention. This
study contributes to the discussions in this area by examining the impact of SRM
practices on the survival of the environmentally sensitive listed companies in
Malaysia. The findings showed that compliance and leadership affect company’s
survival. Since the companies under study were at the early stage in implementing
SRM, compliance with laws and regulations was crucial to avoid unexpected costs
that might threaten their profitability. However, merely focusing on compliance is
inadequate because the companies require strong commitment and support by the
board and senior management to take on the responsibility of recommending ways to
improve the risk management processes. Based on the findings, companies need to
have a persistent strategic planning, progressive knowledge management, sufficient
resources, appropriate risk measurements and tools, and effective business continuity plan to successfully implement SRM.
The study also highlighted that environmentally sensitive companies must not
focus on short-term impact of risks, but they have to consider the long-term impact
of risks as well. SRM implementation serves the objective of environmentally
sensitive companies to enhance their value and reputation in the eyes of their
stakeholders for long-term corporate survival. Thus, this research supports the
practitioners with a better understanding of how to implement SRM programme
effectively. Future researchers could also address the need for effective key risk
indicators which may enhance the company’s capabilities to report risks, prevent
crises, and mitigate problems in a timely manner.
References
Ahn, N. (2015). Corporate sustainability and enterprise risk management: Implementation effects
on performance. Available at https://www2.aaahq.org/AM/display.cfm?Filename¼SubID_800.
pdf&MIMEType¼application/pdf
Amui, L. B. L., Jabbour, C. J. C., de Sousa Jabbour, A. B. L., & Kannan, D. (2017). Sustainability
as a dynamic organizational capability: A systematic review and a future agenda toward a
sustainable transition. Journal of Cleaner Production, 142, 308–322.
12 Meeting the Stakeholder Needs and Sustaining Business Through. . .
205
(iv) appropriate risk measurements and tools, and (v) effective business continuity
plan. According to Amui et al. (2017), companies that fulfil the needs of their
stakeholders have better chances of survival over the long run. The result also
reinforced that meeting the stakeholder needs is essential for any company’s survival. Accordingly, implementing SRM programme is proven to ensure that the
needs and concerns of multiple stakeholders are taken into account in the board’s
decisions.
12.6 Conclusion
SRM practices are an important research area that deserves more attention. This
study contributes to the discussions in this area by examining the impact of SRM
practices on the survival of the environmentally sensitive listed companies in
Malaysia. The findings showed that compliance and leadership affect company’s
survival. Since the companies under study were at the early stage in implementing
SRM, compliance with laws and regulations was crucial to avoid unexpected costs
that might threaten their profitability. However, merely focusing on compliance is
inadequate because the companies require strong commitment and support by the
board and senior management to take on the responsibility of recommending ways to
improve the risk management processes. Based on the findings, companies need to
have a persistent strategic planning, progressive knowledge management, sufficient
resources, appropriate risk measurements and tools, and effective business continuity plan to successfully implement SRM.
The study also highlighted that environmentally sensitive companies must not
focus on short-term impact of risks, but they have to consider the long-term impact
of risks as well. SRM implementation serves the objective of environmentally
sensitive companies to enhance their value and reputation in the eyes of their
stakeholders for long-term corporate survival. Thus, this research supports the
practitioners with a better understanding of how to implement SRM programme
effectively. Future researchers could also address the need for effective key risk
indicators which may enhance the company’s capabilities to report risks, prevent
crises, and mitigate problems in a timely manner.
References
Ahn, N. (2015). Corporate sustainability and enterprise risk management: Implementation effects
on performance. Available at https://www2.aaahq.org/AM/display.cfm?Filename¼SubID_800.
pdf&MIMEType¼application/pdf
Amui, L. B. L., Jabbour, C. J. C., de Sousa Jabbour, A. B. L., & Kannan, D. (2017). Sustainability
as a dynamic organizational capability: A systematic review and a future agenda toward a
sustainable transition. Journal of Cleaner Production, 142, 308–322.
12 Meeting the Stakeholder Needs and Sustaining Business Through. . .
205